Soros favors US monetary policy, warns of "currency war" -CNBC

NEW YORK Thu Jan 24, 2013 5:11pm EST

NEW YORK Jan 24 (Reuters) - Billionaire investor George Soros said on Thursday that he favors U.S. monetary easing policy, but warned of a "currency war" because of differences in how countries manage national deficits.

"I think the policy, basically, pioneered by Bernanke is actually the right policy," Soros told CNBC in an interview from Davos, Switzerland.

Soros was referring to the monetary easing policy of the U.S. Federal Reserve and its chairman, Ben Bernanke, of buying $85 billion in Treasury and agency mortgage securities per month.

Soros warned, however, that Germany's belief in tackling deficits through austerity clashes with other nations' preference for monetary easing, and could spur a "currency war."

"I think the biggest danger is actually, potentially, a currency war," Soros said.

"The rest of the world follows a different recipe from the Germans. Germans believe in austerity, and the rest of the world believes in quantitative easing," Soros added.

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Comments (1)
Redford wrote:
And the Germans are right and will prevail as the rest of the world tanks… Don’t believe anything Soros says… he has no one’s best interests but his own at heart.

Jan 24, 2013 5:40pm EST  --  Report as abuse
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